3 points to look for in a contractor mortgage lender.
Not all contractor mortgage lenders are the same as some offer better terms and conditions than others. But, what criteria should you base your decision on when choosing a lender?
Here are three questions to bear in mind:
How often is the interest calculated on the outstanding mortgage?
Some lenders only recalculate annually, which is of more benefit to them than you, as you are paying interest on a larger amount. Other lenders recalculate monthly, or even daily, which would be ideal scenario to save money.
Are there any penalties to pay in the event of your switching?
Last year’s fall in interest rates saw many record low mortgage rates headlining lenders’ marketing. But what happens after the initial period has ended? Be aware that if you are seduced by a low initial rate, the sting in the tail could be a penalty clause.
What is the lender’s turn-around time on approvals?
Once you’ve found your home, the last thing you want is to lose it because the lender takes too long to approve your application. Being aware of turnaround times is important if you don’t want to miss out.
Alternatively, to avoid the situation altogether, you could source your contractor mortgage before you begin your house-hunting. Deal Direct’s contract mortgage advisers are available now to help you begin.
We are a ‘whole of market’ broker, with access to niche lenders across the UK, who specialise in offering mortgage solutions specifically for contractors like you.
To source a competitive contractor mortgage in 2017, speak to a Deal direct adviser.
Call us today on 0800 048 8828.
